Management Overview. April 26, 2017

Transcription

1 Management Overview April 26,

2 Progress of Medium-Term Business Plan MTBP2016 [Billion Yen] Orders Received Net Sales [Billion Yen] Operating Income 2, , , , , , (9.4%) 55.9 ( 税前 ROIC) 75.0 (8.0%) 1, (3.9%) (5.0%) FY2015 FY2016 FY2017 FY FY2015 FY2016 FY2017 FY2018 Assumed exchange rates (USD) Forecast Forecast MTBP2016 MTBP2016 2

3 Business Portfolio Strategy Four business sectors Aerospace Systems Energy System & Plant Engineering Precision Machinery & Robot Transportation Key products & services that drive growth Commercial aircraft Commercial jet engines Distributed power generation Oil & Gas Industrial robots Medical robots Rolling stock for overseas markets Ship & Offshore Structure, Rolling Stock, Motorcycle & Engine Net Sales development by business sector FY2018 FY2020 FY2025 [Billion Yen] ,000 1,500 2,000 2,500 Operating Income development by business sector FY2018 Operating Margin 4.5% FY2020 Operating Margin 5.3% FY2025 Operating Margin 9% or higher For the time being, Precision Machinery & Robot will be a core profit center. From FY2021, Aerospace System will significantly expand. 3

4 Organizational Restructuring (Structure Rename) Former structure Ship & Offshore Structure Rolling Stock Aerospace Gas Turbine & Machinery Plant & Infrastructure Motorcycle & Engine Precision Machinery Aircraft Jet Engine Energy system Ship & Offshore Structure Rolling Stock Aerospace Systems Energy System & Plant Engineering Motorcycle & Engine No Change No Change No Change New structure (as of 1 st April, 2018) Precision Machinery & Robot Rename 4

5 Organizational Restructuring (Aerospace Systems Company 1/2) Business Direction and Synergies Aerospace Systems Company Strengthen global cost competitiveness Sharing of production bases and supply chain Sharing of outcome of KPS improvement activity and advanced manufacturing technology Business Expansion/ Enhancement through Cooperation Cooperative Business between Aircraft and Engine/Transmission MRO Business (Maintenance, Repair and Overhaul) Creation of New Business Linkage between Aircraft related Technologies and Engine related Technologies Past efforts in collaboration between Aircraft and Engine/Transmission P-1 / C-2 Generator BK117 Transmission Aircraft Co-Development Helicopter Co-Development 5

6 Organizational Restructuring (Aerospace Systems Company 2/2) Aerospace systems Company s sales target in 2025 is 700bil. Fusing fundamental tech as Aircraft System integration tech to create new business. Aiming business expansion through cooperation. Sales( 100mil.) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Engine Business Aerospace Business Synergies Aerospace Systems Business Engine related Technologies Engine module tech (Compressor, Combustor, Gear) Small Engine tech Engine related equipment tech (such as electrical power system) Transmission tech Aerospace Technologies Aircraft system integration tech Composite material application tech Aerodynamic design tech Advanced manufacturing tech (such as IoT) 6

7 Organizational Restructuring (Energy System & Plant Engineering Company 1/2) Business Direction and Synergies Energy System & Plant Engineering Company Enhance core hardware and develop business by proposal of system combined core hardware Enhancement of core hardware and construction of optimal system by combination of core hardware Proposal of distributed energy supply system Formation of system contributing to CO 2 -free society Gas turbine Gas engine LNG terminal EPC Use of cryogenic energy (LNG Hydrogen) Waste treatment facility Hydrogen terminal Fertilizer plant Boiler Construction of optimal system combined Steam turbine core hardware Respond flexibly to customer requests by use of IoT and ICT Develop CCPP standard package (Combined Cycle Power Plant ) Manage projects more efficiently by standardization, increase the accuracy of the estimate and promote cost reduction Provide optimum plants which meet customer needs by combination of KHI s high-efficiency hardware and optimal control Roll out 100MW class power generation equipment across the Southeast Asia, and further, global market Combined Cycle Power Plant consists of two-stage power generation system that a gas turbine and a steam turbine are used in combination. Gas turbine CCPP recovers high temperature and high pressure exhaust emissions energy generated by gas turbine power generation as steam by using heat recovery steam generator and generates power through steam turbine. It is a power generation system of low energy loss. Bird's-eye view of CCPP standard package 7

8 Organizational Restructuring (Energy System & Plant Engineering Company 2/2) Aim to achieve annual sales of 300 billion yen in 2025 Sales growth through expansion overseas and promotion of EPC orders Expanded sales in Southeast Asia market Global trend in demand for electricity Demand for electricity(twh) Region / Demand growth ( ) Africa 43% Middle East 39% Southeast Asia 39% China 39% Far East 7% Europe 10% Russia, Eastern Europe 12% Latin American 23% North America 8% 2020 Forecast Customer needs Want to implement a high-efficiency system 2025 Forecast Source: 2016 IEA energy outlook Want to switch energy source from heavy oil to utility gas to reduce CO 2 emissions Want to cope with fluctuating the amount of electricity and steam required 8

9 Companywide Quality Control System related defects during manufacturing process of the bogie frame Composition of Companywide Quality Control Committee Companywide Quality Control Committee Consist of authorities on quality control engineering, external lawyers, directors, and others Receive findings from Survey Team, clarify the problems, and discuss and decide on measures to correct them Report Survey Team Consist of external consultants, internal experts in quality control, and others First, Investigate the cause of the production defect occurred at Rolling Stock Company Going forward, investigate the state of other internal companies quality control system in detail, and report findings to the committee 9

10 Change of ROIC Rating [Number of BU] ROIC rating As of April 2017 As of April 2018 A Market leader 5 6 B Stable contributor C D Reduced variation in performance required Improved investment efficiency required E Restructuring required 4 2 Year covered Actual & assumed exchange rate(\/$) Actual :FY Forecast:FY FY2015 : 円 FY2016 : 円 FY : 円 Actual :FY Forecast:FY FY2016 : 円 FY2017 : 円 FY : 円 ROIC rating of each BU as of April, 2018 is complied with reclassification of some BUs after April,

11 Figures recorded in the business forecasts are forecasts that reflect the judgment of the Company based on the information available at the time of release and include risks and uncertainties. Accordingly, the Company cautions investors not to make investment decisions solely on the basis of these forecasts. Actual business results may differ materially from these business forecasts due to various important factors resulting from changes in the external environment and internal environment. Important factors that may affect actual business results include, but are not limited to, economic conditions, the yen exchange rate against the U.S. dollar and other currencies, the tax system, and laws and regulations. 11